CommoditiesAll commodity indices are downBrent Crude is trading under $80West Texas Intermediate is under $82Gasoline and Heating Oil Futures are off 5%Natural Gas is down 2%Agricultural Commodities are all downIndustrial Metals and Gold are up

I would characterize this as a global asset re-pricing as nearly all asset classes are off. What would expect to happen as a result of this? Mutual fund redemption and hedge fund implosion are the first things that come to mind.

Therefore, over the weekend the U.S. monetary authorities need to:

Act as Lender of Last resort in the Commercial Paper and in the LIBOR market. Assistance from the Europeans would be appreciated

Start buying shares in financials or preferably take preferred shares in financials as the British are doing.

Think about shutting markets down altogether.

None of this will definitely calm the markets, but we are so close to Depression that they must do everything (anything) in their power to stop this train wreck from happening. We are very close to Financial Armageddon.

Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.